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2<br />
BUSINESS A.M. FEBRUARY, MONDAY <strong>05</strong> - SUNDAY 11, 20<strong>18</strong><br />
NEWS<br />
Equities rally moderates as<br />
NSEASI falls 1.98% week on week<br />
Andy Nssien<br />
N i g e r i -<br />
an equities<br />
NEWS traded lower<br />
in the week<br />
ended January<br />
2, 20<strong>18</strong> as<br />
benchmark index (NSEA-<br />
SI) fell 1.98 percent week<br />
on week despite surge in<br />
financial services stocks.<br />
The NSEASI, the benchmark<br />
index, and market<br />
capitalization depreciated<br />
by 1.98 percent and 2.09<br />
percent to close the week<br />
at 44,639.99 and N16.<strong>02</strong><br />
trillion respectively. Similarly,<br />
all other indices<br />
finished higher during the<br />
week with the exception of<br />
the NSE-main board, NSE<br />
consumer goods and NSE<br />
oil/gas indices that depreciated<br />
by 0.33 percent,<br />
3.33 percent and 0.70 percent<br />
respectively. The NSE<br />
ASeM Index closed flat.<br />
A total of 3.268 billion<br />
shares worth N28.123 billion<br />
in 35,761 deals was<br />
traded during week by investors<br />
in contrast to a total<br />
of 7.157 billion shares<br />
valued at N42.545 billion<br />
that changed hands in the<br />
previous week in 39,037<br />
deals.<br />
The conglomerates<br />
industry followed with<br />
375.113 million shares<br />
worth N1.047 billion in<br />
1,968 deals. The third<br />
place was occupied by<br />
consumer goods industry<br />
with a turnover of<br />
262.198 million shares<br />
worth N6.843 billion in<br />
5,921 deals.<br />
Top three traded equities<br />
were FCMB, Transnational<br />
Corporation of<br />
Nigeria Plc, and Skye Bank<br />
Plc (measured by volume)<br />
accounted for 1.<strong>18</strong>1 billion<br />
shares worth N2.830<br />
billion in 5,219 deals, contributing<br />
36.14 percent<br />
and 10.06 per cent to the<br />
total equity turnover volume<br />
and value respectively.<br />
Market breath closed<br />
better in the week as 49<br />
equities appreciated as<br />
against 30 in the previous<br />
week. Forty-two (42) equities<br />
depreciated in price,<br />
Trading activities<br />
in treasury<br />
NEWS<br />
bills and foreign<br />
exchange drove<br />
FMDQ’s market<br />
turnover to<br />
N142 trillion in 2017. This is despite<br />
a slow recovery from economic<br />
recession, which shaped<br />
most activities in the year.<br />
The FMDQ in its January<br />
newsletter/market report said total<br />
over-the-counter (OTC) market<br />
turnover saw a year-on-year<br />
A major<br />
development<br />
in the week<br />
was the listing<br />
of Seplat’s<br />
additional<br />
volume of<br />
25,000,000<br />
ordinary<br />
shares of<br />
50 kobo each.<br />
Pension funds managers find fortune in<br />
stocks as investments return 21.72% ytd<br />
Steve Omanufeme<br />
Nigerian<br />
pension funds<br />
NEWS<br />
asset managers<br />
are looking<br />
no further than<br />
stocks as the<br />
rally in the market in the last<br />
seven months have put their<br />
investments in pole position,<br />
returning 21.72 percent yearto<br />
date.<br />
The Nigerian Stock Exchange<br />
(NSE) market report<br />
for the week ended February 2,<br />
20<strong>18</strong> indicates that its pension<br />
index, which includes about<br />
40 companies with significant<br />
market capitalization, in which<br />
pension funds are invested<br />
returned about 22 percent in<br />
January 20<strong>18</strong>.<br />
The pension index thus<br />
emerged in the top three of<br />
gainers in the review period.<br />
The banking index topped<br />
indexes with the highest yearto-date<br />
gain of 24.5 percent followed<br />
by the industrial goods<br />
index at 21.92 percent<br />
The pension index specifically<br />
serves as performance<br />
benchmark for pension asset<br />
managers, non-pension asset<br />
managers and investors for the<br />
investment of pension assets. It<br />
also helps PENCOM monitor<br />
compliance and performance<br />
of equities portfolios held by<br />
pension managers.<br />
It equally provides a tracking<br />
mechanism for pension<br />
funds administrators (PFAs),<br />
closed pension funds administrators<br />
(CPFAs) and others<br />
that follow the PENCOM<br />
guidelines, while acting as<br />
benchmark for measuring<br />
performance and reporting<br />
performance to retirement<br />
savings account (RSA) holders.<br />
The Stock Exchange information<br />
guide to the Pension<br />
Index notes that given the size<br />
of the pension fund assets<br />
under management by PFAs,<br />
it is imperative that only companies<br />
with significant market<br />
capitalization should qualify for<br />
inclusion in it.<br />
The NSE Pension 40 Index<br />
has performed well since the<br />
stocks market picked up in the<br />
second quarter of 2017 following<br />
policies by the CBN, which<br />
brought a flurry of portfolio<br />
investors into the market<br />
The development thus freed<br />
The NSE Pension 40<br />
Index has performed<br />
well since the stocks<br />
market picked up in<br />
the second quarter of<br />
2017 following policies<br />
by the CBN<br />
pension schemes from building<br />
up cash holding, which<br />
pervaded the system in 2016<br />
amid fears that equities and<br />
bonds are having negative<br />
returns or are too pricey for<br />
purchase.<br />
According to the Pension<br />
Reform Act of 2014, the allowable<br />
investment instrument<br />
for pension funds shall include<br />
bonds, sukuk, treasury<br />
bills, global depository notes<br />
and other securities issued<br />
by the Federal Government<br />
of Nigeria and CBN or their<br />
agencies as well as special<br />
purpose vehicles and companies<br />
created/owned by<br />
the Federal Government of<br />
Nigeria, provided that the<br />
securities are guaranteed by<br />
the CBN or Federal Government<br />
of Nigeria.<br />
Others are ordinary shares<br />
of public limited liability companies<br />
listed or proposed to be<br />
listed through an initial public<br />
offering (IPO), on a securities<br />
exchange registered by the<br />
country’s Securities and Exchange<br />
Commission .<br />
Money market instruments<br />
of banks and commercial papers<br />
issued by eligible corporate<br />
entities are also eligible<br />
Kemi Adeosun (l), minister of finance, receiving the report of the National Tax Policy Implementation Committee (NTPIC), from<br />
Taiwo Oyedele, vice chairman, NTPIC, in Abuja on Friday<br />
Increased trade in treasury bills, FX drive FMDQ market turnover to 142trn in 2017<br />
Steve Omanufeme<br />
lower than forty-four (44)<br />
equities of the previous<br />
week, while eighty-one<br />
(81) equities remained<br />
unchanged lower than<br />
ninety-eight (98) equities<br />
recorded in the preceding<br />
week.<br />
Also traded during<br />
the week were a total of<br />
32,<strong>18</strong>9 units of Exchange<br />
Traded Products (ETPs)<br />
valued at N1.299 million<br />
executed in 19 deals,<br />
compared with a total of<br />
153,755 units valued at<br />
N1.883 million that was<br />
transacted last week in<br />
11 deals.<br />
A total of 16,268 units<br />
of Federal Government<br />
Bonds valued at N17.<strong>05</strong>3<br />
million were traded this<br />
week in 28 deals, compared<br />
with a total of 6,715 units<br />
valued at N5.3<strong>18</strong> million<br />
transacted last week in 15<br />
deals.<br />
A major development<br />
in the week was the listing<br />
of Seplat’s additional<br />
volume of 25,000,000 ordinary<br />
shares of 50 kobo<br />
each. The additional<br />
shares were as a result of<br />
the company’s Long Term<br />
Incentive Plan (LTIP) for<br />
the benefit of it’s employees.<br />
With this listing, the<br />
company’s total issued<br />
and fully paid up shares<br />
now stands at 588,444,561<br />
ordinary shares was recorded.<br />
On bonds market, an<br />
additional volume of<br />
45,122,840 units and<br />
64,877,160 units were<br />
added to 14.50% percent<br />
FGN Jul 2<strong>02</strong>1 and<br />
16.2884% percent FGN<br />
Mar 2<strong>02</strong>7 respectively on<br />
the 2nd of February 20<strong>18</strong>.<br />
growth rate of 24.97 percent, rising<br />
from the N113.65 trillion recorded<br />
in 2016 to N142.00 trillion in 2017.<br />
According to the newsletter,<br />
FMDQ’s markets experienced a<br />
slow but steady improvement,<br />
with growth primarily driven by<br />
trading activities in the FX and<br />
treasury bills (T-bills) markets.<br />
It said trading activities in<br />
the T-bills market contributed<br />
the largest to overall turnover,<br />
accounting for 42.47 percent<br />
of the total market turnover,<br />
whilst FX transactions (including<br />
FX derivatives) followed<br />
with a combined share of 26.90<br />
percent, and repos/buy-backs<br />
accounted for 22.46 percent.<br />
Bonds and money market<br />
transactions (including unsecured<br />
placement & takings,<br />
commercial papers and money<br />
market derivatives), on the other<br />
hand, had smaller shares of the<br />
market, accounting for 7.01<br />
percent and 1.16 percent respectively.<br />
The reported turnover represents<br />
trades executed among<br />
dealing members, dealing<br />
members & clients, and dealing<br />
members & the Central Bank of<br />
Nigeria (CBN).<br />
The FMDQ OTC Market<br />
Turnover Report shows the<br />
turnover on all products traded<br />
on the FMDQ secondary market<br />
– FX, T-bills, bonds (Federal<br />
Government of Nigeria (FGN)<br />
Bonds, other Bonds (agency,<br />
sub-national, corporate, supranational<br />
& Eurobonds) and<br />
money market (repos/buybacks<br />
and unsecured placements/takings).<br />
The figures exclude<br />
primary market auctions<br />
in T-bills and bonds<br />
The FMDQ said it has remained<br />
steadfast in its drive to<br />
support and champion growth<br />
and development in the Nigerian<br />
debt capital, foreign exchange<br />
(FX) and derivatives markets<br />
and would continue to focus<br />
on delivering its mandates for<br />
these markets, in support of the<br />
realisation of the economic development<br />
agenda for Nigeria.<br />
It said with relevant collaboration<br />
and the effective support of<br />
financial market stakeholders in<br />
2017, the OTC Exchange delivered<br />
value-adding initiatives and solutions,<br />
provided quality and reliable<br />
market data and information,<br />
promoted price discovery and<br />
transparency, facilitated education<br />
and capacity building, and<br />
has gradually commenced the<br />
journey towards the integration<br />
of the domestic markets with the<br />
international counterparts.<br />
“Focused on promoting the<br />
development of the markets<br />
within its purview through the<br />
roll out of innovative initiatives<br />
in 20<strong>18</strong>, with an even expanded<br />
scope to unlock capital through<br />
the markets for the development<br />
of the Nigerian economy, FMDQ<br />
shall continue to work with its<br />
stakeholders to make the Nigerian<br />
financial markets globally<br />
Competitive.’’